subject: Northcore Technologies Inc. (TSX: NTI; OTCBB: NTLNF) Secures Capital For New Product Lines [print this page] Northcore Technologies IncNorthcore Technologies Inc. (TSX: NTI; OTCBB: NTLNF) Secures Capital For New Product Lines
Northcore Technologies Inc. (TSX: NTI; OTCBB: NTLNF), a global provider of asset management technology solutions, is pleased to announce that it has entered into an agreement with GEM Global Yield Fund Limited ("GEM") for a Cdn $6.0 million equity line of credit. Funds raised will be used for the enhancement of existing and development of new product lines within the Company's Working Capital Engine(TM).
According to the terms of the agreement, GEM has agreed to provide the Company with up to Cdn $6.0 million in the form of an equity line of credit. The Company will control the timing and maximum amount of any draw downs under this facility, and has the right not the obligation, to draw down on available funds. The Company has the option within the terms of the agreement, to draw down funds in tranches by requiring GEM to subscribe for the Company's common shares at a 10 percent discount to the average closing price of the Company's common shares over a 15 day trading period following the draw down notice date. GEM will hold freely trading shares of the Company through a share lending facility provided by current shareholders. As part of the equity credit line transaction, the Company has agreed to issue six million warrants to GEM. The warrants will be exercisable for a period of three years from the closing notice date at an exercise price of Cdn $0.27 per share.
"Investment decisions by GEM are based in large part on funding sustainable growth over the long term. Within this context, the due diligence process highlighted the depth of relationship between Northcore and GE Capital Solutions, the level of our products' sophistication, plus our ability to make strategic decisions to develop growth opportunities beyond GE that become possible with GEM's Cdn $6.0 million committed equity line and access to their business network," said Duncan Copeland, CEO of Northcore Technologies.
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